BRIEF: Netanyahu proposes 5 percent cut in milk

4:06 p.m. EST, June 24, 2012|Globes, Tel Aviv, Israel

Prime Minister's Office director general Harel Locker today proposed cutting dairy products' prices by 5 percent within three weeks and by 12.5 percent within five years. The offer was made to the Ministry of Industry, Trade and Labor and the Ministry of Agriculture, under the Dairy Committee recommendations.

Locker, who represents Prime Minister Benjamin Netanyahu, proposes that the government institute measures requiring dairies to lower consumer prices by the same reduction as for the target price of milk.

At the same time, Locker proposes that the government offer free milk quotas to small dairy farmers, with herds of 30-40 cows, to encourage them to expand their herds to at least 70-80 cows. The government plans to buy the quotas of small dairy farmers who do not want to remain in the business, and transfer them to other small dairy farmers.